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The Asian Infrastructure Investment Bank (AIIB) has teamed up with Amundi, Europe’s largest asset manager, to launch $500m of climate change bonds to drive investment in green projects. It is hoped that the initiative will attract matching funds from institutional investors.

The Asia Climate Bond Portfolio, which will be launched in January 2020, aims to boost action to reduce emissions in the bank’s Asian member states and develop the underused climate bond market. Companies will be able to issue the bonds if it is judged that it will help them to adapt their business models to increase climate resilience and green leadership.

DJ Pandian, AIIB’s vice president, said: “We expect this investment will demonstrate how international financial institutions can approach development finance differently to support the Paris Agreement and adoption of climate finance principles.”

Yves Perrier Amundi’s chief executive, added: “Supporting climate champions and the Paris Agreement in Asia is in line with Amundi’s commitment to ESG (environment, social and governance) investing and reflects our extensive commitment to the region. We are proud to launch this new initiative in the field of climate finance.”